Tata Motors (TAMO.NS), opens new tab is betting that its new low-priced Punch EV will succeed in cracking the dominant budget segment of the world’s third-largest car market for electric vehicles, its CEO said ahead of the model’s launch on Friday.
Around 65% of the 4.6 million passenger vehicles sold in India last year were priced below US$13,200. But, of those affordable cars, just 1.6% were EVs, compared to 10% of those in higher price categories.
There currently are only a small number of EV models available in the lower price range in India. And range anxiety and concerns around their slow charging times and battery life reliability are holding back buyers, Shailesh Chandra told reporters.
“The real challenge is the entry segment. Until we crack this, we will not be able to mainstream EVs,” Chandra said.
The new Punch EV is priced from US$10,650, with a long-range variant that can cover a distance of 350 kilometres (217 miles) on a single charge selling for US$13,850.
The Punch can be charged from a 20% battery level to 80% in 26 minutes with a fast charger, the company says, and comes with a lifetime battery warranty.
Tata is also offering an option to decouple the price of the car from the battery, reducing the EV’s upfront cost to $7,100. The battery can then be paid for separately at a price of 3 cents per km.
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